New Zealand Flax Investments Ltd v Federal Commissioner of Taxation

61 CLR 179

(Decision by: Rich J)

New Zealand Flax Investments Ltd
v Federal Commissioner of Taxation

Court:
High Court of Australia

Judges:
Rich J
Starke J
Dixon J
McTiernan J

Subject References:
Taxation and revenue
Income tax
Assessable income
Deductions claimed for future interest
Payment of bonds by instalments

Legislative References:
Income Tax Assessment Act 1922 No 37 - ss 23(1); s 25

Hearing date: SYDNEY 26 August 1938; 29 August 1938; 22 November 1938;
Judgment date: 22 November 1938

Sydney


Decision by:
Rich J

In this matter the company appealed from the decision of the board of review to this court.

On the appeals coming on to be heard by me I considered that it was preferable under s. 18 of the Judiciary Act to direct the matter to be argued before the Full Court upon agreed facts from which the court was to be at liberty to draw inferences rather than to state a case as the parties had suggested. I allowed, however, the questions of law appended to the statement of facts to remain as serving to indicate the topics to be argued.

In the circumstances I think that the assessments should be set aside and remitted to the commissioner. In any reassessment he should include only bond moneys received in the accounting periods. With regard to the deductions claimed for future interest and deferred commission the commissioner should allow such part as is referable to the accounting periods under assessment. There should be no order as to costs.